Buy-to-let Mortgages

Investing in property

Buy-to-let mortgages made simple

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Personal advice from an experienced professional. We can save you time and money on your next mortgage.

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We can help you to arrange any type of buy-to-let mortgage, no matter how complex.

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What is a Buy-to-Let Mortgage?

A Buy-to-let mortgage is a mortgage for the property that is intended to be rent out. These differ from traditional residential mortgages. They are two types of Buy-to-let mortgages – Commercial but-to-let mortgages and Consumer buy-to-let mortgages. At Glade Financial we can help you to arrange any type of buy-to-let mortgage, including buy-to-let portfolios, HMO, and commercial mortgages.

Buy-to-Let for Investors

A buy-to-let mortgage is when a person buys property as an investment, rather than a place to live. This type of mortgage is more likely to be interest-only and will require a higher deposit, typically at 25%. There is also a requirement for the rental income to cover the mortgage payment and other fees associated with the property. Buy-to-let interest-only mortgage will not pay off the initial capital owned, and the interest will therefore be the same throughout the term.

Whether you are a first-time landlord or a seasoned property professional, we can advise you on the best available mortgage products currently on the market.

 

Consumer Buy-to-Let

Consumer BTL is when a person becomes an ‘accidental landlord’. This is due to circumstances, rather than intentional investment. This can happen in several situations:

  • Inheriting a property and the market is not right for the sale
  • Moving abroad for work and leaving the house to be rent out
  • Intending to sell but it is difficult to sell so the property is temporarily rent out

These mortgages are regulated mortgages (unlike investment BTL mortgages) and fall under the same regulations as residential mortgages. If you think you fall in this category, give us a call and we can discuss your requirements.

How can we help?

Whole of market

We have access to over 90 banks and specialist lenders.

Max 80% LTV

We could help you buy a property with as little as 20% deposit.

Term from 2-years-fixed

We can advise on the best deals currently on the market.

Borrow up to £2m

Our lenders offer mortgages from £25,000 to £2m.

Free initial consultation

Free initial consultation and fixed fees to arrange a mortgage.

Tailored to individuals

Mortgages available with no minimum income, age up to 85 years old, or limited companies.

Buy-to-let calculators

BTL Rental Income Ratio Calculator

Calculate a minimum income required for you buy to let property investment.

Stamp Duty Land Tax Calculator

Calculate how much you would pay in Stamp Duty Land Tax based on the property price.

We work with over 90 lenders

From high-street banks to specialist finance providers

Common questions about Buy-to-Let mortgages

Most frequent questions regarding a buy to let mortgage

Consumer buy-to-let mortgage is when a person becomes an ‘accidental landlord’. This is due to the circumstances, rather than intentional investment. This can happen in several situations: inheriting a property, moving abroad for work and leaving the house to be rent out, intending to sell but it is difficult to sell so the property is temporarily rent out. These mortgages are regulated mortgages (unlike investment buy-to-let mortgages) and fall under the same regulations as residential mortgages. If you think you fall in this category, give us a call and we can discuss your requirements.

An investment buy-to-let mortgage is when a person buys a property as an investment, rather than a place to live. This type of mortgage is more likely to be an interest-only and will require a higher deposit, at least 20%. There is also a requirement for the rent to cover the mortgage payment and other fees associated with the property. Buy-to-let interest-only mortgage will not pay off the capital owned, and the interest will therefore be the same throughout the term (with decreasing capital repayment mortgage, the interest is calculated only on outstanding debt).

Rental cover ratio shows how much the rental income covers the mortgage payments. A rental cover ratio of 1.5 or 150% would cover the mortgage payment by 150%, for example if the mortgage interest payment is £1,000 and the rental income £1,500, the rental cover is 1.5. You can also use our calculator.

An SPV, or a Special Purpose Vehicle, is a way of investing in property through a limited company. The company owns the properties and pays dividends to directors. The biggest advantage of holding properties in SPV is tax treatment. This allows a company to offset mortgage payments against income tax. It is also allowed to buy and sell shares in a SPV to raise capital, rather than sell the property itself.

An HMO, or Houses in Multiple Occuption is a property rented to at lease 3 tenants that share common areas, like kitchen and bathroom.

A large HMO is when at least 5 tenants occupy property.

Many councils introduced HMO licences, so please check with your council about the rules and obligation as a landlord.

Yes, it is vital, although not mandatory, you have a specialist landlord insurance to cover the unexpected costs of damage or legal costs, when you need to deal with nuisance tenants. 

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